The IRS, Politics, and Income Inequality
7 Pages Posted: 19 Mar 2016 Last revised: 7 Jun 2016
Date Written: March 17, 2016
The IRS is in crisis. In recent years, Congress has cut its budget significantly, piled on the workload, and conducted oversight hearings that were often quite partisan. The IRS needs more funding to carry out its mission. For that, it needs Congressional support. Unfortunately, bashing the IRS generally scores political points, while supporting tax collectors does not. However, research suggests that inadequate enforcement of a progressive tax system may actually increase income inequality. Accordingly, Congressional supporters of progressive taxation should use the fight against rising income inequality as a rhetorical tool to help the IRS receive more balanced treatment.
Keywords: IRS, income inequality, progressive taxation, Congress, Internal Revenue Service
JEL Classification: D31, E62, H20, H30, K34
Suggested Citation: Suggested Citation